Amortization Calculator
An amortization schedule shows how a loan is paid down over time. Each payment covers the interest first, then reduces what you owe, so the split changes every month.
- Free
- Works offline after your first visit
- Saves on this device
- No sign-up
- Updated
How it works
The monthly payment comes from the standard loan formula: the amount borrowed times the monthly rate, divided by one minus one plus the monthly rate, raised to the minus number of months. The monthly rate is the yearly rate divided by 12.
Each month, interest is the balance times the monthly rate. The rest of the payment reduces the balance. Open the table to see every row.
Worked example
A loan of $250,000.00 at 6.5% over 30 years comes to $1,580.17 a month. The payments total $568,861.22, which is $318,861.22 more than was borrowed.
Questions
Why does so little of the early payment reduce the balance?
Interest is charged on the full balance at the start, so most of each early payment covers interest. The share going to the balance grows as the balance falls.
Does a schedule include taxes or insurance?
No. It shows the loan only. Taxes, insurance and fees are separate costs on many loans.
What if I pay a little extra each month?
Extra money goes to the balance, which shortens the loan and cuts the interest. A separate extra payment calculator on this site shows how much.
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